Christine Buemann Mortgage Broker

Here are a few tips to remember should you decide to keep your current home as a rental: Your property taxes will likely go up. Assuming you have bee claiming the $770 Annual homeowners grant, you can no longer claim it if you don't live in the property so you will want to budget for that and let your lender know if they withdrawing a tax portion with your mortgage payment Your home owner's insurance policy will change (and likely go up). Be sure to get quotes for the new insurance coverage as soon as possible. It's a good idea to ask your tenants to get renters insurance as well You will have to pay income tax on the income earned from your property. Since you will have to claim this income at tax time, be sure you budget for that You will likely have to pay capital gains tax when you sell the property (as it will now be an investment instead of your primary residence). You will definitely want to consult an Accountant about this If you have any questions ...

Are you purchasing a new home and considering what to do with your current home? Should you sell it, or maybe keep it as a rental? When it comes to financing your new purchase, every lender will treat your existing property a little differently. Most banks will want you to include the current mortgage payment, property tax and heat in your debts and will only allow you to add 50% of the rental income back to your income. As a Mortgage Broker, we have access to several lenders who use their own calculations which makes it much easier to qualify. Typically, they will use the rental income and take away the expenses as well as certain percentage for maintenance and vacancy. Any surplus is then added to your income and any deficit is added to your liabilities. Using this second method typically allows you to qualify for a much larger mortgage on your new purchase. Stay tuned next week and I will provide some tips (from personal experience) if you choose to ...

If you are looking to buy a rental property, it is important to note that there have been several changes over the past few years. Here are the basics of what you should know: ·          You will need a down payment of at least 20% ·          Some lenders will no longer finance rental properties at all ·          Some lenders are charging the default insurance premiums to the client, regardless of the loan to value ratio ·          You can expect a slightly higher interest rate ·          Remember that you are not able to claim the Home Owner’s Grant on rentals, so you will have to factor in an addition $770 annually into your budget ·          You can expect slightly higher home insurance premiums ·      ...